An increasing number of UK homeowners are having solar panels installed in a bid to become more energy independent. However, for most households, going completely ‘off-grid’ is unrealistic.
Solar panels can significantly reduce electricity bills, but you may still pay for electricity when your system doesn’t generate enough energy, such as at night or on cloudy days. You must also pay a standing charge to remain connected to the National Grid.
While it’s usually not possible to escape paying for electricity, installing solar panels can help you save a significant amount on your electricity bills. There’s also the opportunity to sell any unused electricity back to the grid, which can help offset the costs further. Read on for Cinergi’s helpful guide on paying for electricity when you install solar panels.
If you are a homeowner in the South of England seeking advice on solar PV panels, look no further than Cinergi. We are trusted renewable energy experts serving Hampshire, West Sussex, Dorset, Somerset and Wiltshire. Contact us today to find out more about how solar panels can benefit your home or business.
Please note that this blog is intended for informational purposes only. For advice tailored to your property, please talk to one of our team who can provide specific guidance.
How do solar panels affect your electricity bills?
A solar panel system converts sunlight into electricity using photovoltaic (PV) cells. It then converts the electricity into AC electricity, which is used to power appliances in your home. While solar panels don’t need direct sunlight to work, they can only generate electricity during daylight hours. Their efficiency depends on factors like roof orientation, shading, and weather conditions.
In spring and summer, it’s likely that your solar panels will generate enough energy to sustain your home. You may even generate more than you need, in which case you could store it in a battery for later use or sell it to the grid.
However, in the murkier months, your panels might not generate enough electricity, meaning you will need to draw power from the National Grid. This will result in electricity costs from your supplier. However, your overall energy bills should be lower due to your reduced reliance on the grid.
How much you can save depends on your home’s energy consumption, your location, the efficiency of the solar PV system, and whether you store excess energy in a solar battery for later use. If you install other renewable energy technology, like heat pumps alongside solar panels, you could cut your energy bills even further.
Do I need to tell my electricity supplier when I install solar panels?
When you install solar panels, you should inform your energy supplier. This is particularly important if you plan to sell unused electricity to the grid through the Smart Export Guarantee (SEG) scheme.
Your existing energy supplier may offer an SEG tariff, allowing you to earn money for the excess solar energy you generate. If they don’t, you will need to shop around. Not all electricity providers offer the same export rates, so comparing tariffs can help you maximise your earnings from surplus solar energy.
Some energy suppliers may require you to update your electricity meter or install a smart meter to ensure you can accurately track your usage. If you are unsure, it’s best to contact your energy company before installing solar panels to understand any requirements.
Do I need to tell the DNO before installing solar panels?
You must also inform your local Distribution Network Operator (DNO) when installing solar panels. The DNO is responsible for managing the energy generated in your area to ensure the grid remains stable and safe for all users.
For solar installations 3.68 kW or smaller per phase, you can go ahead without DNO permission as long as you notify them within 28 days after the system is commissioned. This is known as the ‘connect and notify’ process.
For larger systems (above 3.68 kW per phase), you’ll need to apply for permission before installation. The DNO will assess whether your local grid can handle the extra energy being generated and might need to make adjustments before granting approval.
Find your DNO here.
Do you still pay a standing charge if you have solar panels?
Even if you have solar panels, if you are connected to the grid, you will still need to pay a standing charge to your electricity supplier. The standing charge is a fixed daily fee that covers the costs of maintaining the electricity supply network, including the distribution network operator (DNO), infrastructure maintenance, and administrative costs.
Since you remain connected to the grid for times when your solar system does not generate enough electricity, this charge is unavoidable. However, you may find that your overall electricity bills are significantly lower due to reduced energy usage from the grid.
What happens to excess solar energy?
When your solar panels generate more electricity than your household needs, the excess energy can be used in several ways:
- Stored in a solar battery – A solar battery storage system allows you to store excess electricity for use when the panels are not generating enough energy.
- Exported to the grid – If you do not have a solar battery, the excess electricity will automatically be sent to the National Grid. If you are on an SEG tariff, you could be paid for it.
- Used to power additional appliances – Smart home technology can help direct excess energy to power heat pumps, electric vehicle chargers, or water heaters.
Can I sell solar energy I don’t use back to the grid?
You can sell excess solar energy to the National Grid under the Smart Export Guarantee (SEG) scheme. The SEG allows homeowners with solar PV systems to receive payments for the surplus electricity they generate and export.
To qualify, you need to register with an energy supplier that offers an SEG tariff. The amount you receive for selling electricity to the grid will depend on the rate set by your supplier. Some suppliers offer competitive rates, while others may offer minimal payments, so it’s worth shopping around for the best deal.
By selling electricity back to the grid, you can maximise the financial incentives of your solar panel system, further reducing the payback period on your initial solar panel installation cost.
Looking to reduce your electricity bill? Contact Cinergi
If you want to save money on your electricity bills and reduce your carbon footprint, solar panel installation could be the perfect solution. At Cinergi, we specialise in high-quality solar installations that help you generate your own electricity and take advantage of renewable energy.
Our team provides expert advice on solar PV systems, battery storage, and other renewable technologies like air source heat pumps. Whether you need guidance on the installation process, financial incentives, or the best way to use your solar energy, we’re here to help.
Get in touch today to find out how much you could save with solar power.
Frequently asked questions about electricity usage and solar energy
The amount you receive for exporting electricity depends on your energy supplier’s Smart Export Guarantee (SEG) tariff. Rates vary between suppliers, typically ranging from 4 – 16p for every kWh (kilowatt-hour). It’s best to compare SEG tariffs before choosing an electricity supplier to ensure you get the best deal.
Most solar panel systems come with a monitoring app or display that shows how much electricity your panels generate and how much energy you consume. If your energy demand exceeds what your panels generate, you will be drawing electricity from the grid.
Solar panels work by harnessing the sun’s energy and converting it into electricity. However, factors such as a south-facing roof, seasonal changes, and local weather conditions can affect how much electricity your solar PV system generates. While your system may produce excess electricity on sunny days, this surplus electricity may not always be sufficient to eliminate your reliance on the National Grid completely.
Most standard grid-connected solar panel systems do not work during a power cut for safety reasons. This is because they automatically shut down to prevent electricity from being fed back into the grid, which could endanger engineers repairing the lines.
In most cases, you do not need planning permission to install solar panels on your home, as they fall under permitted development rights. However, if you live in a listed building, conservation area, or national park, you may need approval.
Pitched roof-mounted panels should not protrude more than 200mm from the surface, installation on a flat roof should not exceed 600mm above the highest elevation, and ground-mounted systems have size restrictions. If you’re unsure, always check with your local planning authority.
Cinergi provides tailored installations to each and every property, and we will provide a unique quote based on your requirements. Typically, solar systems cost upwards of £5k/£6k for a domestic property.
